Home prices increased the most in Oregon (11.7 percent), Washington (10.3 percent), Colorado (10.2 percent), Florida (10.0 percent) and Nevada (9.6 percent).

LOLI don't know much about market cycles (I need to learn) but I feel that something like RE can't keep increasing in prices at current rates while the rest of the economy is going at a slower pace.

The NOI will increase due to increased rents.

Another advantage of higher priced homes, is the power of leverage and the tenant paying off a higher amount of principal payments each month which increases your equity at much higher rates than for cheap homes

When building new, it is possible to design and build houses, and larger buildings, with a modest increase in up-front capital (10 - 15%) costs in comparison to the "normal/typical" minimum code build, which have resulting energy consumption 70%+ lower.  

So, based on these numbers, it's a good deal if rehab can be done below $40K.As far as financing, a conventional lender won't do it because of the general house condition and a hard money lender won't do it because of QCD that is not insurable.

It will give you a good base line of the property condition when you purchase.

Good chances are you'll be fine if you give them a notice to vacate, but what you may think is totally rational could increase your liability and land you in hot water if the tenant decides to lawyer up.

They base my sfh off comps and I'm sure they would also appraise and find comps for your multi units and if you put $40k in rehab then that is good for you because that will increase the value and some of the other multi units may not be as updated as yours.

You need to consider that you do not know the condition inside.